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Investing in the stock market is a great way to build long-term wealth and passive income. One method that stands out for its income generation is dividend investing. Dividend stocks can provide a steady, reliable payout for investors. Furthermore, dividend-paying stocks have consistently outperformed their non-dividend-paying peers.
In a study by Hartford Funds and Ned Davis Research, over 50 years, dividend-paying stocks have delivered an average annual return of 9.17%. In comparison, non-dividend payers have returned just 4.27%. Additionally, dividend stocks exhibit less volatility, making them appealing to those seeking stability and growth.
If you're thinking of diving into the world of dividend investing, here are three high-yield dividend stocks you can scoop up today.
These midstream stocks deliver reliable, high-yielding dividends
Pipeline stocks can be a solid choice for investors seeking dividend income. Midstream companies serve a crucial function by moving oil, natural gas, and other resources from extraction sites to refineries and distribution centers.
Their extensive pipeline networks and well-structured agreements facilitate the flow of energy and ensure visibility into future revenue. With fees tied to long-term contracts, they enjoy financial stability, enabling them to reward their investors consistently.
These companies could do well under President Donald Trump and U.S. Secretary of Energy Chris Wright, who wants to "unleash the golden era of American energy dominance." Deregulation and opening up land for drilling could support more pipeline infrastructure projects to increase transportation and storage and boost pipeline operators' bottom lines.
Enterprise Products Partners (NYSE: EPD) is a top midstream operator, with its network of pipelines stretching over 50,000 miles. The company has significant storage capacity to help facilitate the movement of crude oil and natural gas, natural gas liquids (NGLs), and refined products.
It is also bringing significant projects online this year, with roughly $7.6 billion under construction. The bulk of these projects ($6 billion worth) will come online in 2025, with the remainder expected to go into service over the next three years. The company pays a dividend of 6.3% and has raised its payout for 26 consecutive years.
Meanwhile, Enbridge (NYSE: ENB) is coming off a record year and has expanded thanks to its acquisition of three U.S. natural gas utility companies from Dominion Energy for around $19 billion. The company said the deal would make it the largest gas utility on the continent by volume, shipping more than 9 billion cubic feet per day. Enbridge has a stellar dividend of 6.2% and has raised its payout for 30 consecutive years.